Section 8 Fair Market Rent (FMR) for ZIP 48843 - 2027

Investment Score for ZIP 48843

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,270
1 Bedroom	$1,400
2 Bedrooms	$1,600
3 Bedrooms	$2,220
4 Bedrooms	$2,560
5 Bedrooms	$2,970
6 Bedrooms	$3,326
7 Bedrooms	$3,592
8 Bedrooms	$3,772

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,600	$271,321	0.59%	F
3BR	$2,220	$371,952	0.6%	F
4BR	$2,560	$468,103	0.55%	F
5BR	$2,970	$569,024	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 48843 (Howell, MI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 48843 is set by HUD for 2026, with the following rates: - 0BR: $1050 - 1BR: $1320 - 2BR: $1520 (which represents 19.3% of the median household income) - 3BR: $2110 - 4BR: $2380 These FMRs are designed to reflect the average rental costs in the area, but they do not necessarily align with actual rents. The price-to-FMR ratio for a 2BR unit is 14.5x, meaning that the Zillow median price for a 2BR home is $264,174, which is significantly higher than the FMR. This suggests that actual rents could be much higher than the FMRs, creating a challenge for Section 8 voucher holders who can only afford units up to the FMR rate. For instance, a 2BR unit at the FMR of $1520 would likely be hard to find given the high median home value. This means that voucher holders might face significant constraints in finding suitable housing, potentially leading to a concentration of demand in lower-priced units or areas outside the immediate ZIP code. #### Affordability & Renter Profile ZIP code 48843 has a population of 48,014, with 22.0% of households being renters. The occupancy rate stands at 96.9%, indicating a tight market where most available units are occupied. Given the median household income of $94,577, the 2BR FMR of $1520 represents only 19.3% of this income, suggesting that the majority of residents can afford to pay more than the FMR for rent. However, the high price-to-FMR ratio indicates that the actual rental market is far more expensive than the FMR suggests. This tight market condition makes it difficult for low-income renters to find affordable housing, especially those relying on Section 8 vouchers. The median home value of $264,174 further underscores the premium nature of the local housing market, making affordability a key issue for many potential renters. #### Investor Angle From an investor perspective, the ZIP code 48843 presents a mixed picture when considering the FMRs. While the median home value is high, the FMRs are relatively low compared to the actual market prices. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical rental yields and expenses. Given the high median home value and the tight market conditions, it is likely that rental yields at the FMR level would be lower than market rates. For example, a 2BR unit renting at $1520 per month would generate annual income of $18,240. If we assume a typical property management cost of 10% and maintenance costs of 1%, the net effective rental income would be around $16,357 annually. To assess whether this is cash-flow positive, we need to consider the mortgage payments and other expenses. Assuming a 2BR home purchased at the median value of $264,174 with a 30-year fixed-rate mortgage at 5%, the monthly mortgage payment would be approximately $1,400. This translates to an annual mortgage payment of $16,800. When combined with property taxes, insurance, and utilities, the total annual expenses could exceed the net rental income, making it challenging to achieve positive cash flow solely based on FMR. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should focus on acquiring properties that fall within the FMR range, particularly 0BR, 1BR, and 2BR units. These units are more likely to be rented by Section 8 voucher holders. For example, a 1BR unit renting at $1320 per month would generate annual income of $15,840, which might be closer to achieving positive cash flow when considering all expenses. 2. **Consider Multi-Family Properties**: Multi-family properties can offer better economies of scale and potentially higher occupancy rates. A 2BR apartment complex with multiple units could provide a more stable income stream and mitigate the risk of vacancy. Additionally, multi-family properties often have lower maintenance costs per unit compared to single-family homes. 3. **Evaluate Property Location**: Given the tight market conditions, properties located in areas with lower median home values or closer to public transportation and amenities might be more attractive to voucher holders. This could help ensure higher occupancy rates and reduce the risk of vacancies. #### Bottom Line For Section 8-focused investors, ZIP code 48843 (Howell, MI) presents a challenging environment due to the high median home values and tight rental market. The FMRs are significantly lower than the actual market rents, making it difficult to find properties that are both affordable and profitable. Based on the data provided, the recommendation is to **Skip** this ZIP code for now unless you can identify specific opportunities in lower-cost units or multi-family properties that can achieve positive cash flow despite the high median home values. The high price-to-FMR ratio suggests that the market is not favorable for investors looking to leverage Section 8 vouchers for rental income.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.